Directors Reports
DIRECTORS REPORT
To,
The Members
The Directors have pleasure in presenting their 7th Annual report and Audited Accounts
for the financial year ended March 31, 2014.
1. STATE OF AFFAIRS OF THE COMPANY
Performance of the Company
Commissioning of Unit 1
We are pleased to inform you that your Company commenced commercial operations of Unit
1 in the financial year 2013-14 and Commercial Operations Date (COD) was declared on
February 1, 2014. The brief particulars about capacity installed and generation during the
financial year is as below:
| Particulars |
Units |
| Licensed Capacity |
1400 MW |
| Installed Capacity |
700 MW |
| Actual Generation |
379.93 mio units |
Fuel
Fuel Supply Agreement (FSA) has been signed between the Company and South Eastern
Coalfields Limited (SECL) during the financial year 2013-14 for an annual quantity of 5.55
MTPA.
FINANCIAL RESULTS
Your Directors take pleasure in presenting the financial highlights for the financial
year 2013-14 which is as follows:
Amount (in Rs. Lakhs)
| Particulars |
FY 2013-14 |
FY 2012-13 |
| Revenue from Power Plant Operations |
18,772.17 |
– |
| Finance Lease Income |
10,233.17 |
– |
| Sale of O&M of Plant |
8,538.32 |
– |
| Revenue from Construction Activities |
2,64,616.58 |
3,26,168.69 |
| Total Revenue |
2,83,388.75 |
3,26,168.69 |
| Operating Costs |
11,886.47 |
– |
| Construction Costs |
2,17,174.67 |
3,04,532.13 |
| Total Costs |
2,29,061.14 |
3,04,532.13 |
| Operating Profit |
54,327.61 |
21,636.56 |
| Add: Other Income |
336.62 |
310.27 |
| Less: Finance Costs |
56,938.79 |
31,631.21 |
| Profit before Depreciation |
(2,274.56) |
(9,684.38) |
| Less: Depreciation & Amortization |
32.79 |
23.44 |
| Profit Before Tax |
(2,307.34) |
(9,707.82) |
| Less: Tax |
– |
– |
| Net Profit / (Loss) after Tax |
(2,307.34) |
(9,707.82) |
Sale of energy: The power generated from Unit 1 as per the Contracted Capacity
under the Power Purchase Agreement (PPA) was sold to Punjab State Power Corporation
Limited (PSPCL) and the total turnover amounted to Rs. 18,772.17 Lakhs.
Sales during Construction phase: During the year, Rs. 2,64,616.58 lakhs was
recognized as Construction Work-in-Progress (WIP) at realizable sales value towards
construction costs of Unit 1 & Unit 2.
2. APPROPRIATION
During the year under review, your Company has not made any appropriations.
3. DIVIDENDS
Your Company commenced operations of Unit 1 in the current year and Unit 2 being under
construction, your Directors are not recommending dividend for the year 2013-14.
4. CAPITAL AND FINANCE
Long Term Debt
Secured term loan of Rs. 7,200 Crores has been sanctioned to the Company through
syndication of 24 Banks against the security of mortgage and hypothecation of its assets
and receivables over the period of loan. Part of this sanctioned loan is refinanced though
External Commercial Borrowing (ECB) route for JPY 10,462.3 Million.
Working Capital
Your Company has entered into Working Capital arrangement with an existing lender bank
for fund based facility of Rs. 150 crs and non-fund facility of Rs. 100 crs during the
year to meet the working capital requirements during operations.
Credit Rating
The Company has been rated as ‘CARE A1’ for its working capital facility and
continues to be rated as ‘CARE A’ for its long term loan facility by Credit
Analysis and Research Limited (CARE).
5. CAPITAL EXPENDITURE
As at March 31, 2014, the gross tangible and intangible assets, including capital
work-in-progress stood at Rs. 24,08,14,538. Depreciation of
R 1,42,11,295 is charged up to March 31, 2014. Additions during the year amounted to
Rs. 34,55,219 and deduction of tangible assets Rs. 2,36,756.
6. AUDITORS’ REPORT
The Auditors’ report does not contain any qualifications. The notes on financial
statements referred in the Auditors’ report are self-explanatory and do not call for
any further comments of the Directors.
7. DEPOSITS
The Company has not accepted any deposits from the public.
8. MATERIAL CHANGES, IF ANY, BETWEEN DATE OF THE BALANCE SHEET AND DATE OF THE
DIRECTORS’ REPORT
There are no material changes that have taken place in the Company between the date of
the Balance sheet and the date of the Directors’ Report.
• Conservation of energy, technology absorption and foreign exchange earnings and
outgo as per form a (rule 2) of Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988.
Information as per form A (rule 2) of Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988, relating to Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo is provided in Annexure "A"
forming part of this Report.
9. RISK MANAGEMENT POLICY
A risk management policy has been formulated and implemented to identify, mitigate and
review the risks, which in the opinion of the Board, threaten the existence of the
Company.
10. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company realizes its responsibility to its stakeholders, especially to the society
at large and taken several initiatives towards repaying to the society.
Your Company has contributed to the socio-economic development of the nearby area by
undertaking initiatives during the year under review in the following areas:
a) Up-gradation of Village Infrastructure
b) Incentivizing birth of female child
c) Shagan scheme to provide financial assistance
d) Skill building and development programs
e) Health and environment programs
During the year, your Company formed a CSR committee in order to formulate, recommend
and monitor CSR policy of the Company.
11. PARTICULARS OF EMPLOYEES U/S 217(2A)
There are no employees covered by the provisions of the Section 217(2A) of the
Companies Act 1956, read with the Companies (Particulars of Employees) Rules, 1975.
12. SUBSIDIARY COMPANIES
Your Company does not have any subsidiary company under its purview.
13. DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors of your Company confirms that:
i. in the preparation of the annual accounts, the applicable Accounting Standards have
been followed;
ii. the Directors have selected such accounting policies and applied them consistently
and made judgments and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at the end of the financial year and
loss of the Company for the that period.
iii. the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities;
iv. the Directors have prepared annual accounts on a going concern basis; and
v. the Directors have devised proper systems to ensure compliance with the provisions
of all applicable laws and that such systems were adequate and operating effectively.
14. DIRECTORS
At present, the Board comprises of Mr. Shailendra Roy, Mr. Ashwani Kumar, Mr. Sunil S.
Sapre and Mr. Ajit Kumar Samal.
In the ensuing Annual General Meeting, Mr. Shailendra Roy and Mr. Sunil Sapre are
liable to retire by rotation and being eligible offer themselves for re-appointment.
The Board met regularly during the year under review.
15. AUDIT COMMITTEE
The Audit Committee consists of three Non-Executive Directors. The present members of
the Committee are Mr. Shailendra Roy, Mr. Ashwani Kumar and Mr. Sunil S. Sapre.
The Committee met periodically during the year under review.
16. AUDITORS
The Auditors, M/s Sharp & Tannan, Chartered Accountants, being Statutory Auditors
of the Company hold office until the conclusion of the ensuing Annual General Meeting and
are eligible for re-appointment.
Certificate from the auditors has been received to the effect that their
re-appointment, if made, would be within the limits prescribed under Section 141(3)(g) of
the Companies Act, 2013 .
17. COST AUDITORS
Pursuant to The Companies (Cost Audit Record) Rules, 2011 issued by the Ministry of
Corporate Affairs on June 03, 2011, the Company is required to appoint a Cost Auditor and
file the Cost Audit Report with the Registrar of Companies. Unit 1 of the plant commenced
generation of electricity during the year and hence cost audit is applicable for the
financial year 2013-14.
In this regard M/s. R. Nanabhoy & Co, Cost Accountants having Membership Number
0010 were appointed as Cost Auditors vide the Circular Resolution of the Board dated June
4, 2013 for Cost Audit for the financial year 2013-14 .
18. ACKNOWLEDGEMENTS
The Directors acknowledge the invaluable support extended to the Company by the
Financial Institutions, Bankers, Regulatory Authorities, employees of the Company and
management of the parent company.
|
For and on behalf of the Board |
| Place : Mumbai |
SHAILENDRA ROY |
ASHWANI KUMAR |
| Date : April 25, 2014 |
Director |
Director |
ANNEXURE "A" TO THE DIRECTORS REPORT
[A] CONSERVATION OF ENERGY
Energy Conservation Measures taken
Several Energy Conservation measures have been implemented in the design stage itself
and performance of these measures shall be monitored regularly and several other new
initiatives will also be launched. Major steps taken towards Energy Conservation during
the Construction Phase of the Project are described as under:-
1. Improving Energy effectiveness/ efficiency of Manufacturing Processes
i. Installation of NDCT in Place of IDCT - Natural Draft Cooling tower has been
constructed in place of the conventional Induced Draft Cooling Towers for the units. There
is no additional Auxiliary Power Consumption in NDCT to perform the cooling action for the
circulating water as against IDCT
ii. Installation of Turbine Driven Boiler Feed Pump (TDBFP) as against Motor Drive
Boiler Feed Pumps (MDBFP) which results in conservation of energy and corresponding
improvement in efficiency.
iii. Vertical Water Wall internally Riffled Tube Construction in Place of Spiral Water
Wall which results in lower pressure drop on furnace walls and thus reduces the loading of
Boiler feed pumps
iv. Bypass valve in Secondary Pass of Boiler: The valve provides a bypass to secondary
pass and thus results in lower flow in the pass in place of total flow as required in
conventional boiler.
v. Pulveriser with Motorised Rotatory Separator: This provides better control over Coal
fineness under variable load conditions and thus contributes to improve the Boiler
Efficiency.
vi. Installation of Online Condenser Tube Cleaning System (OLTCS): OLTCS will improve
the efficiency of condenser and thus overall efficiency of the unit is improved.
vii. Installation of Seal Adjustment Damper in Air Pre Heaters: The damper is used to
adjust the seal in order to reduce the air leakages which results in reduction of loading
of fans.
2. Improving Energy effectiveness/ efficiency of Equipment
i. Use of LED Illumination:
Area illumination has been installed with LED having less energy consumption as
compared to conventional Sodium based flood lights.
Additional investments and proposals, if any, being implemented for reduction of
consumption of energy
The Company is in the process of identification of the areas of improvement to reduce
the Consumption of Energy during its operation phase and is committed to implement the
same in near future in order to improve the efficiency of the plant.
Impact of the measures at (A) and (B) above for reduction of energy consumption and
consequent impact on the cost of production
• Reduction of Specific Coal consumption
• Impact on the cost of production of goods
• Reduced auxiliary power consumption, Heat Rate improvement
• Reduction of Specific Oil consumption
[B] TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO
There was no technology absorption during the year 2013-14.
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO
There was no earnings and outgo in foreign currency during the year 2013-14.
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